Medical Office with Existing
New
For Sale
$550,000
2653 West Peterson Avenue, Chicago, IL 60659
Existing healthcare improvements support continued clinical use or other professional occupancy.
Property Size2,200 SF
Price / SF$250
Days on Market5
Property Features for 2653 West Peterson Avenue
General Information
Standard status
Active
Size
2,200 SF
Total Parking Spaces
4
Property subtype
Office
Building Details
Building Size
2,200 SF
Buildings
1
Listing Agency:
Joseph Rossi & Associates, Inc (JRA) - Corporate
(313) 920-3593
Listed By:
William Park
(313) 920-3593
Source:
Jrossiandassociates
Added: Aug 16
Changed: Aug 18
Last Checked: Aug 20 at 4:35AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Joseph Rossi & Associates, Inc (JRA) - Corporate
Investment Insights
Based on property information with market context.
Located at 2653 West Peterson Avenue in Chicago, this commercial property includes an existing medical buildout and a functional interior arrangement. The current improvements support continued healthcare operations while allowing consideration of professional or other commercial uses.
The property is positioned along Peterson Avenue with established visibility and access to surrounding residential areas. Its configuration provides a practical foundation for an owner-user or commercial occupant seeking an existing medical-office setting.
The property is positioned along Peterson Avenue with established visibility and access to surrounding residential areas. Its configuration provides a practical foundation for an owner-user or commercial occupant seeking an existing medical-office setting.
Key Highlights
- Existing medical buildout
- Functional layout for continued healthcare use
- Potential flexibility for professional or commercial occupancy
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$47,203
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.58%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$944,060
$944.1K
Cap Rate 7%
$674,329
$674.3K
Cap Rate 9%
$524,478
$524.5K
Market Conditions
NOI Build-Up for 2,200 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$84.5K $38.40/SF
− Vacancy
−$21.5K −$9.79/SF
EGI
$62.9K $28.61/SF
− OpEx
−$15.7K −$7.15/SF
NOI
$47.2K $21.46/SF
Area
Chicago, IL
Vacancy
25.50%
Lease Rate
$38.40 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$944,060
Cap Rate 7%
$674,329
Cap Rate 9%
$524,478
Alternative Uses
Best Use
Office B
$674.3K
$590.0K – $786.7K
NOI $47,203 @ 7.0% cap · market cap 8.58%
Second Best
Healthcare Medical
$416.4K
$364.3K – $485.8K
NOI $29,146 @ 7.0% cap · market cap 5.30%
Theoretical Best
Office A
$1.04M
$907.6K – $1.21M
NOI $72,611 @ 7.0% cap · market cap 13.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,926
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60659, IL
40,579
Population
14,748
Households
2.8
Avg Household Size
36
Median Age
40%
College-Educated
82%
High-School Grad
2.4 sq mi
ZIP Area
16,908
Density / Sq Mi
$70,033
Median Household Income
$40,493
Median Earnings
$1,391
Median Rent
$358,800
Median Home Value
Market
Vacancy Rate% for Office in Chicago, IL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Existing healthcare improvements support continued clinical use or other professional occupancy.
Where is this medical office space located?
The property is located at 2653 West Peterson Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Existing medical buildout; Functional layout for continued healthcare use; Potential flexibility for professional or commercial occupancy
